How People Data Can Improve Diversity and Inclusion Initiatives

Relying on people data is the most effective approach to improving diversity and inclusion. Here are five ways people data can improve gender parity and D&I initiatives in your organisation.

TL;DR: People data improves diversity and inclusion by replacing guesswork with evidence. It helps HR leaders identify where D&I initiatives will have the most impact and provides accurate metrics to track progress. This data-driven approach leads to measurable improvements in gender parity and overall D&I outcomes.

McKinsey's Diversity Wins report found that companies in the top quartile for gender diversity are 25% more likely to achieve above-average profitability, and those in the top quartile for ethnic diversity are 36% more likely. The commercial case for structured D&I measurement is clear. (McKinsey)

Gender equality is a fundamental human right and the critical foundation for a more peaceful, prosperous, and sustainable world. Gender parity has taken centre stage for many companies who are striving to be responsible corporate citizens committed to playing their part in achieving the UN Sustainable Development Goals.

However, women continue to earn less money than male counterparts, have fewer opportunities for promotion and development, and are still subject to workplace abuse. This is despite the fact that the value of gender leadership parity has been well documented for several years.

| Metric | Value | Source | | Higher total return to shareholders for companies with higher female executive representation | 34% | McKinsey Women in the Workplace | | Improvement in female leadership ratio achieved through structured people data programmes | 4% | Visier study of 100,000+ employees | | Improvement in retention of female leaders through data-driven D&I initiatives | 3.7% | Visier study of 100,000+ employees |

Why is data-driven D&I essential?

Historically, a haphazard approach to gender parity in companies has not shown any real sustainable change in the long run. Instead, relying on people data seems to be the most effective approach.

A study conducted by Visier of over 100,000 employees in 15 companies showed that people data improved the female leadership ratio to males by 4%, and improved retention of female leaders by 3.7%. The question we now need to consider is not if people analytics will improve diversity and inclusion in companies, but how it can improve it.

How does people data improve diversity and inclusion?

Here are five concrete ways that structured people data can improve gender parity and diversity and inclusion initiatives.

1. It provides certainty and accuracy: Without people data and analytics, companies play guessing games to ascertain what the current gender balance landscape looks like, what contributes to the success or failure of diversity and inclusion initiatives, and whether or not any real measurable change has taken place. Data replaces guesswork with evidence.
2. It tells you where D&I initiatives would have the biggest impact: Having a broad understanding of a company's diversity landscape is useful, but people data provides a more granular view of different business units that highlights specific places where diversity may be lacking or concentrated. This allows you to direct resources where they will have the most impact.
3. It empowers HR and executives: People data allows key stakeholders to have robust, confident discussions about the diversity and inclusion talent pipeline and ensures that these are kept top of mind. When the data is clear, the conversation becomes easier.
4. It focuses coaching and development initiatives: Coaching and development initiatives need to continue to focus on the C-Suite level in order to break through the glass ceiling and make progress on gender leadership parity. In addition, there should be an intense focus on coaching and developing a pipeline of entry to mid-level women in order to overcome the 'broken rung' of the corporate world.
5. It enables accountability: What gets measured gets managed. When D&I metrics are tracked and reported alongside business performance metrics, they receive the same level of attention and accountability. Data makes it harder to deprioritise D&I when other pressures mount.

Coaching and the leadership pipeline

If we want to see profitable and positive workplaces, and if we seriously want to contribute to achieving gender equality goals, then people data and analytics are of the utmost importance.

The most effective D&I strategies combine data with targeted development. Identify where the pipeline breaks down - whether at entry level, mid-management, or the C-Suite - and design coaching and development interventions that address those specific gaps. Data tells you where to focus. Development programmes deliver the change.

DataHub - Build a Complete View of Your Workforce DataHub centralises your workforce data to give you the granular view you need to identify where D&I initiatives will have the most impact - and to track progress over time with confidence. Explore DataHub

Frequently Asked Questions

How does people data specifically improve diversity and inclusion?

People data provides concrete evidence of your current diversity landscape, replacing assumptions with facts. It helps identify specific areas within your organisation where diversity is lacking or concentrated, allowing for targeted and effective diversity and inclusion initiatives.

What are the main benefits of using people data for D&I initiatives?

Using people data for diversity and inclusion initiatives offers several key benefits. It provides certainty and accuracy in assessing D&I efforts, helps direct resources to areas of greatest impact, and empowers HR and executives with clear data for strategic discussions about the talent pipeline.

Can people data help retain diverse talent?

Yes, people data can significantly improve the retention of diverse talent. By analysing data related to employee engagement, promotion rates, and exit interviews, companies can identify factors contributing to attrition among specific demographic groups and implement targeted strategies to improve retention.

How can HR leaders start using people data to enhance gender parity?

HR leaders can start by collecting and analysing existing HR data related to gender representation across all levels, hiring, promotions, and compensation. This initial analysis will establish a baseline and highlight areas where focused diversity and inclusion efforts are most needed to improve gender parity.